Ask a CPA

Not all business years end on December 31. When you start a business, you can pick the twelve-month cycle. A business year or fiscal year can end on the last day of any month. However, if you elect S status, the year end is usually the same as the calendar year end.

If you are a sole proprietor, estimated taxes are due four times a year, based upon the net profit for the period preceding the payment due date. Estimated tax payments are due April 15, June 15, Sept 15 and Jan 15. Don't forget you will also owe self-employment taxes on your net profits. Please contact a CPA in your area for more information.

If you are incorporated, you are deemed a employee and should be included on a payroll system. S corporation owner shareholders need to take a "reasonable" salary. Only begin a payroll for yourself when you know your business has the cash flow to allow you to regularly and consistently take a check. The amount of your check will be net after withholdings. If you never have had any experience running a business, you definitely need to retain a CPA to advise you about payroll reporting requirements for yourself and your workers. You are personally liable for any payroll taxes you do not pay in a timely fashion or those you fail to report, even if you are incorporated. Some CPAs will recommend a payroll service company.

You must contact the State Department of Taxation where your business is located. Sales tax is a tax charged by various states on the sale of products or services? You must register with that state and every state's rules are different. Contact a CPA in your state to determine your responsibilities. As a business owner always remember, you are personally liable for sales tax not remitted properly, whether you collect it or not. So get yourself a good CPA.

There are many sources of money to start a business. However, realistically borrowing money from traditional sources such as a bank for a small business startup will be based solely on the credit worthiness of the owner of the business. In other words, you will have to sign personally. The SBA and Business Development Center are good places to start inquiring if your credit is good. If your credit is not good, find an angel investor, a friend or family member, to jump start your idea. A CPA quite often can help you find alternative sources of money, traditional and non-traditional.

If you are a sole proprietor or are a involved in a partnership, you are going to need a certificate of doing business and a Federal ID number. The certificate is usually obtained at the county or township hall in the county or township you are doing business. If you are incorporated, the bank will require a copy of your filing receipt or certificate of incorporation, your corporate seal and your Federal ID#. A CPA can obtain your Federal ID number and even incorporate your business for you.

Foreign Exchange rates in the newspaper are often "wholesale" or "interbank" rates that are generally only available to large corporations. These rates are not available to smaller retail customers who want to purchase foreign currency for an foreign trip. Generally, your bank rates will be competitive with other retail bank locations.

Using foreign currency purchased before you leave will mean you will have cash in hand for immediate expenses when you arrive such as taxis, trains, meals, tips etc. When you arrive at your destination the last thing you will want to do is deal with the hassle of standing on a long line to exchange currency at the airport.

In 1999, 11 European countries qualified under the convergence criteria to use the Euro as their currency: Austria, Cyprus, Belgium, Finland, Germany, France, Ireland, Luxembourg, Italy, Portugal, Spain and the Netherlands. Cyprus, Greece, Slovenia, Malta and Slovakia were later admitted, bringing the total countries to 16. Some countries like Turkey and Romania have expressed a desire to join the EU but have not yet met the criteria to join. Notable holdouts include the Scandinavian countries like Norway, Denmark and Sweden, in addition to England. Though these countries are members of the European Union, they have opted out of using the euro as their standard currency. Some countries, like Montenegro, are permitted to use the euro as their currency but have no representation in the European Union. A key strength of the euro is currency stability. Businesses no longer face risk from currency exchange rates and tourists no longer pay the price of currency conversion. Rising costs (inflation) are kept at bay because countries must maintain a low inflation rate in order to join. Furthermore, because the euro inextricably links the economies of its members, the currency provides a disincentive for countries to go to war with the other. Euro-using countries are unable to set their own monetary policy and instead must abide by the policies outlined by the European Central Bank. This lack of autonomy creates difficulties when countries experience an economic downturn. A specific country, such as Greece, is unable to devalue its currency to keep prices stable and increase exports to raise money. This highlights another weakness; the economic troubles of one country become the economic troubles of all euro members. Not all countries will agree on how to handle these problems either. During the Greek debt crisis of 2010, Germany (regarded as one of the strongest economies in Europe) had very different ideas than Greek leaders on how to extricate Greece from its debt.

Capitalization is the process of adding unpaid interest to the principal loan amount. It increases the balance that future interest accrues on and the total gross amount to be repaid.